06171981 Special Meeting - Laserfiche WebLink

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Special Meeting June 17, 1981 89 Page 3 Mr. James stated that he and Council would receive the City Manager's Report on the Budget Process. City Manager A. C. Gonzalez then went over his Budget compilation with the Council pointing out all increases and decreases that had been made since the prior budget repo'rt was given. Consultant Don Laine spoke briefly concerning the budget. The Social Service Agency requests were not included in this Budget report. The Council asked that the Agencies be invited to make a short oral presen- tation at a Special Meeting to be held July 6, 1981 at 5:30 p.m. Mr. James introduced for consideration the Bond Program. Bill Harrison, Bond Consultant, spoke briefly concerning bonds. Legally the City of San Marcos could issue a maximum of $1,600,000.00 in general revenue bonds at 11 percent with a 20-year payout. Principal and interest requirements would be $201,000.00 annually. The City has allocated $100,000.00 in the budget for repayment of bonds. We could only is- sue $750,000.00 in revenue bonds or $800,000.00 in general obligation tax bonds at 10 1/2 percent without having to raise taxes. In order for the City to issue additional revenue bonds, the City would have to demonstrate that it could pay our outstanding bonds and proposed bonds issued. He stated that in order to issue additional parity bonds, the City must produce a net income of at least 1 1/2 times the principal and interest required of the o~anding bonds and the proposed bonds to be issued, and he did not recommend that we issue $1,600,000.00 in bonds, as we had been using fund balances from Pre- vious years. It could cause the City to receive a lower rating, and the City now has an investment grade rating. Mr. Harrison set out the timetable for bonds. The City would first have to determine the propositions for bonds. Thirty days after the election you can legally sell the bonds. During that period of time you could obtain a rating pertaining to proposed bonds issued as well as outstanding bonds. Once the rating is obtained you can set a date to sell the bonds and then the City would actually receive funds in four or five weeks. Mr. James indicated he felt the Council would need financial advice while in the process of making the bond decisions and by consent of the Council Mr. James set a Workshop for the Bond Program for Wednesday, June 24, 1981 at 5:30 p.m. Public hearings on the Bond Program were scheduled for the June 24 meeting and for June 29, 1981 at 7:30 p.m. The meeting adjourned at 9:00 p.m. on motion of Mr. Brown and seconded by Mrs. Norris. Karl W. Brown Council Member ~ohn A. ~/Council ATTEST: is K. Womack City Secretary Robert L. Cavazos Council Member ~d~A. Mende~ counj~ i 1 Me~er Tess Norr±s Council Member